Vecima Reports Breakout Q4 and Fiscal 2026 Results, Achieving Record Quarterly Revenue and Adjusted EBITDA

⁽¹⁾

Reflects non-cash expense associated with warrants issued to a customer which are recorded as a sales incentives under IFRS Accounting Standards.

EBITDA and Adjusted EBITDA:

Calculation of Adjusted EBITDA

(in thousands of dollars)

Q4 FY26

Q3 FY26

Q4 FY25

FY 2026

FY 2025

Net income (loss) from continuing operations

$

5,382

$

(512

)

$

(13,296

)

$

4,865

$

(18,495

)

Income tax expense (recovery)

4,299

(235

)

(5,596

)

3,371

(6,983

)

Interest expense

2,223

1,821

3,233

9,080

10,010

Depreciation of property, plant and equipment

619

607

633

2,694

3,092

Depreciation of right-of-use assets

344

394

422

1,496

1,483

Amortization of deferred development costs

5,155

5,263

4,691

20,094

15,900

Amortization of intangible assets

686

677

660

2,744

2,842

EBITDA

18,708

8,015

(9,253

)

44,344

7,849

Intangible asset impairment expense

–

–

6,949

–

6,949

Write-down of inventory to net realizable value

64

1,876

8,152

4,031

8,274

Loss on sale of assets

–

9

–

12

65

Warrant expense (recovery)

(319

)

385

(14

)

247

(1,752

)

Share-based compensation

338

360

361

1,648

1,855

Advisory fees

131

–

–

131

390

Restructuring costs

–

–

–

–

2,798

Adjusted EBITDA

$

18,922

$

10,645

$

6,195

$

50,413

$

26,428

Adjusted EBITDA margin

20.8

%

16.9

%

9.3

%

17.1

%

9.5

%

Net Debt:

Calculation of Net Debt

(in thousands of dollars)

June 30,
2026

June 30,
2025

Revolving line of credit

$

13,768

$

33,938

Current portion of long-term debt⁽¹⁾

12,847

8,336

Long-term debt⁽¹⁾

22,116

19,927

48,731

62,201

Less: cash and cash equivalents

(2,876

)

(3,441

)

Less: lease liabilities

(5,187

)

(5,150

)

Net debt

$

40,668

$

53,610

⁽¹⁾

Current and long-term debt includes lease liabilities on the consolidated statements of financial position.

Research and Development Expenditures

Calculation of R&D Expenditures

(in thousands of dollars)

Q4 FY26

Q3 FY26

Q4 FY25

FY 2026

FY 2025

R&D expense per consolidated statements of

comprehensive income (loss)

$

12,565

$

13,175

$

11,723

$

50,426

$

45,316

Deferred development costs

9,440

7,901

8,251

32,840

30,716

Amortization of deferred development costs

(5,155

)

(5,263

)

(4,691

)

(20,094

)

(15,900

)

Research and development expenditures

$

16,850

$

15,813

$

15,283

$

63,172

$

60,132

Percentage of sales

18.5

%

25.8

%

23.5

%

21.4

%

21.6

%

Discontinued Operations

Discontinued Operations Income Data

(in thousands of dollars except common share data)

Q4 FY26

Q3 FY26

Q4 FY25

FY 2026

FY 2025

Sales

$

1,766

$

1,892

$

2,088

$

7,405

$

7,813

Cost of sales

509

512

847

2,166

2,689

Gross profit

1,257

1,380

1,241

5,239

5,124

Operating expenses

3,467

1,115

1,130

6,776

4,186

Operating income (loss)

(2,210

)

265

111

(1,537

)

938

Net income (loss)

(2,279

)

266

92

(1,691

)

733

Net income (loss) per share – basic and diluted

$

(0.09

)

$

0.01

$

0.01

$

(0.07

)

$

0.03

Other Data:

Adjusted earnings (loss) per share

$

(0.09

)

$

0.01

$

0.00

$

(0.07

)

$

0.04

Adjusted EBITDA

502

625

511

2,359

2,428

Research and development expenditures

$

420

$

408

$

375

$

1,560

$

1,444

VECIMA NETWORKS INC.

Consolidated Statements of Financial Position

(in thousands of Canadian dollars)

As at June 30,

2026

2025

Assets

Current assets

Cash and cash equivalents

$

2,876

$

3,441

Accounts receivable

30,821

23,916

Income tax receivable

1,629

1,690

Inventories

92,382

110,631

Prepaid expenses and other current assets

8,530

6,685

Contract assets

4,620

1,159

Assets held for sale

10,329

–

Total current assets

151,187

147,522

Non-current assets

Property, plant and equipment

10,974

10,935

Right-of-use assets

4,773

4,824

Goodwill

10,812

16,934

Intangible assets

109,859

101,610

Investment tax credits

20,694

22,157

Deferred tax assets

27,004

27,656

Other long-term assets

250

431

Total assets

$

335,553

$

332,069

Liabilities and shareholders’ equity

Current liabilities

Revolving line of credit

$

13,768

$

33,938

Accounts payable and accrued liabilities

46,127

37,694

Provisions

1,012

874

Deferred revenue

13,325

15,226

Current portion of financial liability

519

290

Current portion of long-term debt

12,847

8,336

Liabilities directly associated with assets held for sale

1,001

–

Total current liabilities

88,599

96,358

Non-current liabilities

Provisions

595

460

Deferred revenue

8,132

1,755

Long-term debt

22,116

19,927

Total liabilities

119,442

118,500

Shareholders’ equity

Share capital

24,152

24,152

Reserves

7,614

5,966

Retained earnings

179,682

181,857

Accumulated other comprehensive income

4,663

1,594

Total shareholders’ equity

216,111

213,569

Total liabilities and shareholders’ equity

$

335,553

$

332,069

VECIMA NETWORKS INC.

Consolidated Statements of Comprehensive Income (Loss)

(in thousands of Canadian dollars, except per share amounts)

Years ended June 30,

2026

2025

Sales

$

294,958

$

278,050

Cost of sales:

Cost of product and services

160,016

165,326

Write-down of inventory to net realizable value

4,006

8,428

Total cost of sales

164,022

173,754

Gross profit

130,936

104,296

Operating expenses

Research and development

50,426

45,316

Sales and marketing

35,100

33,422

General and administrative

25,636

26,960

Impairment of intangible assets

–

6,949

Restructuring costs

–

2,798

Share-based compensation

1,648

1,855

Other expense

147

451

Total operating expenses

112,957

117,751

Operating income (loss)

17,979

(13,455

)

Finance expense

(9,063

)

(9,986

)

Foreign exchange loss

(680

)

(2,037

)

Income (loss) before income taxes

8,236

(25,478

)

Income tax expense (recovery)

3,371

(6,983

)

Net income (loss) from continuing operations

4,865

(18,495

)

Net income (loss) from discontinued operations

(1,691

)

733

Net income (loss)

$

3,174

$

(17,762

)

Other comprehensive income (loss)

Item that may be subsequently reclassified to net income (loss)

Exchange differences on translation of foreign operations

$

3,069

$

(161

)

Comprehensive income (loss)

$

6,243

$

(17,923

)

Net income (loss) per share

Continuing operations

$

0.20

$

(0.76

)

Discontinued operations

(0.07

)

0.03

Total basic net income (loss) per share

$

0.13

$

(0.73

)

Weighted average number of common shares outstanding

24,314,594

24,313,618

VECIMA NETWORKS INC.

Consolidated Statements of Changes in Equity

(in thousands of Canadian dollars)

Share capital

Reserves

Retained
earnings

Accumulated
other
comprehensive
income (loss)

Total

Balance as at June 30, 2024

$

24,117

$

4,120

$

204,968

$

1,755

$

234,960

Net loss

–

–

(17,762

)

–

(17,762

)

Other comprehensive loss

–

–

–

(161

)

(161

)

Dividends

–

–

(5,349

)

–

(5,349

)

Shares issued by exercising options

35

(9

)

–

–

26

Share-based payment expense

–

1,855

–

–

1,855

Balance as at June 30, 2025

24,152

5,966

181,857

1,594

213,569

Net income

–

–

3,174

–

3,174

Other comprehensive income

–

–

–

3,069

3,069

Dividends

–

–

(5,349

)

–

(5,349

)

Share-based payment expense

–

1,648

–

–

1,648

Balance as at June 30, 2026

$

24,152

$

7,614

$

179,682

$

4,663

$

216,111

VECIMA NETWORKS INC.

Consolidated Statements of Cash Flows

(in thousands of Canadian dollars)

Years ended June 30

2026

2025

OPERATING ACTIVITIES

Net income (loss) from continuing operations

$

4,865

$

(18,495

)

Adjustments for non-cash items:

Loss on sale of property, plant and equipment

12

65

Depreciation and amortization

27,028

23,316

Impairment of intangible assets

–

6,949

Share-based compensation

1,648

1,855

Warrant expense (recovery)

247

(1,752

)

Write-down of inventory to net realizable value

4,031

8,274

Income tax expense (recovery)

614

(1,060

)

Deferred income tax expense (recovery)

2,757

(5,923

)

Interest expense

9,080

10,011

Interest income

(17

)

(24

)

Net change in working capital

15,592

42,057

(Decrease) increase in other long-term assets

(102

)

263

Increase in provisions

289

383

Income tax paid

(3

)

(3,028

)

Interest received

7

49

Interest paid

(9,114

)

(10,366

)

Cash provided by discontinued operations

866

823

Cash provided by operating activities

57,800

53,397

INVESTING ACTIVITIES

Deferred development costs

(32,398

)

(29,494

)

Capital expenditures

(3,946

)

(2,310

)

Proceeds from sale of property, plant and equipment

6

161

Business acquisitions, net of cash acquired

–

(3,881

)

Cash used by discontinued operations

(1,008

)

(1,116

)

Cash used in investing activities

(37,346

)

(36,640

)

FINANCING ACTIVITIES

Net repayments of revolving line of credit

(20,170

)

(17,794

)

Principal repayments of lease liabilities

(1,599

)

(1,515

)

Repayment of term credit and loan facilities

(922

)

(951

)

Repayment of insurance financing

(781

)

(960

)

Repayment of EDC loan

(2,333

)

–

Proceeds from insurance financing

692

935

Proceeds from EDC loan

10,000

6,000

Proceeds from shareholder loan

–

5,000

Dividends paid

(5,349

)

(5,349

)

Issuance of shares through exercised options

–

35

Cash used by discontinued operations

(64

)

(82

)

Cash used in financing activities

(20,526

)

(14,681

)

Net (decrease) increase in cash and cash equivalents

(72

)

2,076

Effect of change in exchange rates on cash

(493

)

(771

)

Cash and cash equivalents, beginning of year

3,441

2,136

Cash and cash equivalents, end of year

$

2,876

$

3,441